Will the U.S. Economy Worsen in the Next 6 Months? 36% of Americans Think So
It's safe to say that 2020 has been an unkind year to the U.S. economy. While stocks have largely held steady, job loss has been rampant, and consumer confidence may be rapidly waning, especially as recent reports point to an uptick in COVID-19 cases and election-related volatility rears its ugly head. It's not surprising, then, to learn that 36% of Americans think the economy is going to get worse over the course of the next six months, according to the SimplyWise September 2020 Retirement Confidence Index. If you share that concern, here are a few important steps you can take to prepare.
A worsening economy could spur additional job loss, and to survive that, you'll need a solid level of savings. During normal times, an emergency fund with three to six months' worth of living expenses will usually suffice, but given current conditions, you may want to aim for six to nine months' worth of bills in the bank. That way, if your income takes a hit, you'll have options for paying your expenses without having to tap your stock portfolio and risk losses there.
So far, the stock market seems to be defying the ongoing recession. Though September has been a bit rocky, it's been a good year for stocks on a whole, but that could change if negative news on the coronavirus front emerges. It's for this reason that you'll need a balanced and diversified portfolio, so pay attention to the way your assets are allocated based on your age, and make sure you own stock from a wide range of market sectors. And if that's not the case, make changes now, before stock values decline.
Source Fool.com
